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A poor power factor causes the meter to rotate more slowly than it should, so a poor power factor would reduce your bill. Electric utilities compensate for this in commercial services by billing based on power factor, or they install a meter that actually measures power factor.

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Energy meters 'read' the in-phase component of load current (therefore the load's 'true power' multiplied by time) and, so, are completely unaffected by the power factor of a load. So the power factor of a residential load will have absolutely no effect whatsoever on that residence's 'energy' (not 'power') bill.

Industrial and commercial consumers are billed for 'demand' (their rate of consumption of energy -i.e. the power) as well as energy supplied'. In addition, these consumers are usually penalised if the power factor of their load falls below an agreed value. So power factor does affect the overall bill (but not the energy bill) of industrial consumers.

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Q: How does power factor affect your power bill?
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